Burger, Martijn J.Ianchovichina, Elena I.2014-03-182014-03-182014-02https://hdl.handle.net/10986/17303This paper investigates the factors associated with foreign direct investment "surges" and "stops," defined as sharp increases and decreases, respectively, of gross foreign direct investment inflows to the developing world and differentiated based on whether these events are led by waves in greenfield investments or mergers and acquisitions. Greenfield-led surges and stops occur more frequently than mergers and acquisitions-led ones and different factors are associated with the onset of the two types of events. Global liquidity is the only factor significantly associated with a surge, regardless of its kind, while decline in global economic growth and a surge in the preceding year are the only predictors of a stop. Greenfield-led surges and stops are more likely in low-income and resource-rich countries than elsewhere. Global growth, financial openness, and domestic economic and financial instability enable mergers and acquisitions-led surges. These results differ from those in the literature on surges and stops and are particularly relevant in countries where foreign direct investments dominate capital flows.en-USCC BY 3.0 IGOACCOUNTINGANNUAL GROWTHARBITRAGEURSASSETSBALANCE SHEETBANK POLICYBONDCAPITAL ACCOUNTCAPITAL ACCOUNT OPENNESSCAPITAL CONTROLSCAPITAL FLOWCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETCAPITAL TRANSACTIONSCENTRAL BANKCONTROL VARIABLESCORPORATE ASSETSCOUNTRY LEVELCOUNTRY RISKCOUNTRY SIZECREDIT MARKETCREDIT MARKETSCROSS-BORDER CAPITALCROSS-BORDER MERGERSCUMULATIVE DISTRIBUTIONCUMULATIVE DISTRIBUTION FUNCTIONCURRENCYCURRENCY CRISESCURRENT ACCOUNTDEBT SERVICEDEMOCRACYDEPENDENT VARIABLEDESCRIPTIVE STATISTICSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING ECONOMIESDEVELOPING WORLDDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDIVERSIFICATIONDOMESTIC MARKETSDUMMY VARIABLEDUMMY VARIABLESECONOMIC CONDITIONSECONOMIC DEVELOPMENTSECONOMIC GEOGRAPHYECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC LAWECONOMIC RISKECONOMIC STABILITYECONOMIC STUDIESECONOMIC SYSTEMSEMERGING ECONOMIESEMERGING MARKETEMERGING MARKETSEMPIRICAL EVIDENCEEMPIRICAL LITERATUREEMPIRICAL MODELSEQUITY CAPITALESTIMATION STRATEGIESESTIMATION TECHNIQUESEXCHANGE RATEEXCHANGE RATE STABILITYEXPLANATORY VARIABLESEXPORTSEXPOSUREEXTERNAL FINANCINGFINANCIAL CAPITALFINANCIAL CRISESFINANCIAL FLOWFINANCIAL FLOWSFINANCIAL INSTABILITYFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL OPENNESSFINANCIAL RISKFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL STUDIESFIRM ASSETSFOREIGN CAPITALFOREIGN DEBTFOREIGN DEBT SERVICEFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN FIRMSFOREIGN INVESTORSFOREIGN MARKETFOREIGN OWNERSHIPGDPGDP PER CAPITAGLOBAL ECONOMYGLOBAL FINANCIAL MARKETSGLOBAL LEVELGLOBAL LIQUIDITYGLOBAL MARKETSGLOBAL RISKGOVERNMENT INTERVENTIONSGOVERNMENT POLICIESGROWTH RATEGROWTH RATESHOST COUNTRIESHOST COUNTRYHOST ECONOMIESHUMAN CAPITALIMPORTIMPORTSINCOMEINCOME LEVELINCOME LEVELSINCOMESINDEPENDENT VARIABLESINFLATIONINFLATION RATEINFLOWS OF CAPITALINTEREST RATEINTERNATIONAL BANKINTERNATIONAL BUSINESSINTERNATIONAL ECONOMICSINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL STATISTICSINTERNATIONAL MONEYINTERNATIONAL STANDARDSINTERNATIONAL TRADEINTERNATIONAL TRANSACTIONSINVESTINGINVESTMENT INFLOWSJOINT VENTURESLEADING INDICATORSLEVERAGELIQUIDITY CRISESLOCAL CURRENCYLONG-TERM BOND YIELDSLONG-TERM CAPITALLOW-INCOME COUNTRIESLOW-INCOME ECONOMIESMACROECONOMIC EFFECTSMACROECONOMIC ENVIRONMENTSMACROECONOMIC MANAGEMENTMACROECONOMIC UNCERTAINTYMACROECONOMIC VOLATILITYMACROECONOMICSMARKET COMPETITIONMARKET ENTRYMARKET POWERMARKET STRUCTUREMARKET VALUATIONSMEAN VALUEMONETARY ECONOMICSMONETARY FUNDNATURAL RESOURCENATURAL RESOURCESNET CAPITALOPEN ECONOMIESOUTPUTPER CAPITA INCOMEPER CAPITA INCOME LEVELSPER CAPITA INCOMESPOLICY ANALYSISPOLICY MAKERSPOLICY RESEARCHPOLICY RESPONSESPOLITICAL DETERMINANTSPOLITICAL ECONOMYPOLITICAL INSTABILITYPOLITICAL REGIMESPOLITICAL RISKPOLITICAL STABILITYPOOR COUNTRIESPRICE VOLATILITYPRIVATE SECTOR CREDITPRODUCTION COSTSPROTECTIONISMREAL GDPREINVESTMENTREINVESTMENT OF EARNINGSRELATIVE PRICERICH COUNTRIESROBUSTNESS CHECKSSHORT-TERM CAPITALSIGNIFICANT EFFECTSLOWDOWNSSTANDARD DEVIATIONSTANDARD DEVIATIONSSTOCK MARKETSTOCK MARKET CAPITALIZATIONTAKEOVERTECHNOLOGY TRANSFERTRADE OPENNESSUNCERTAINTYVOLATILITYWELFARE IMPACTWORLD DEVELOPMENT INDICATORSWORLD ECONOMYWORLD INVESTMENT REPORTWORLD TRADE10.1596/1813-9450-6771